Should we stop paying our mortgage?

cas444

dh and I jointly own the house. He is thinking of being declared BR.

If he goes down this route and the OR decides we will lose the house should we stop paying the interest only mortgage and save the money for a deposit for rented accomodation?

copier_guy

Hi,

Any idea if your house is in negative equity?

Do you want to stay in the house if possible?

Angiepange

Hi

Also have a read here

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/home.pdf

You will not necessarily lose your home through BR.

HTH

cas444

I think there's about £5-8k equity in the house but there is nowhere I could borrow money from anywhere to buy dhs share of the equity so if the OR wants to sell it we are resigned to losing it.

Angiepange

I would say then at this stage you should continue with your mortgage (as long as you can afford to pay it, of course, and you hope to remain in the home) and wait and see when DH goes BR what the OR will decide to do with the house.

If you are worried about saving for renting, once valuations have been done and you know what equity is defiinitely the house, and you are in a position where you cannot afford to purchase it, then would be the time to stop paying and start saving for renting. The repo process can take many months so you would have time to save up before eviction.

Falze

I agree with Angie. The Repo proceedure does take time.

Also alot of valuations for a quick sale come up less then normal and therefore the equity in the property would be reduced.

Good Luck in whatever you do and dont rush into anything, decide yourselves and in your time scale what you want to do.

Get as much free advise as you can (u can never have too much info) and post queries here and those that know and that have been through it can help you.

Take Care,


Falze.